I Will Teach You To Be RichOptimizing your personal finance is one of the most important things to do. The reason is that your financial situation affects other parts of your life. If you had financial problems then it would be difficult for you to live life to the fullest.
I Will Teach You To Be RichThat’s why I was glad to receive a review copy of I Will Teach You To Be Rich by Ramit Sethi. The book aims to help you optimize your personal finance. Though the word “rich” in the title might mean different things for different people, here is what it means for the author:
What does rich mean to you? For me, it’s about freedom — it’s about not having to think about money all the time and being able to travel and work on the things that interest me.
I agree completely. Being rich is not about having a lot of money. It’s about having the freedom to enjoy life without financial worries.
Inside I Will Teach You To Be Rich
The book starts with an introduction followed by nine chapters.
When it comes to personal finance, the worst thing you can do is not taking action. Don’t wait until you get the perfect solution before you act. Instead, use what the author calls The 85 Percent Solution: a solution that isn’t perfect but is good enough to get you started.
To help you keep the balance between enjoying your life and controlling your expenses, here is a principle you might find useful:
Spend extravagantly on the things you love, and cut costs mercilessly on the things you don’t.
1. Optimize Your Credit Card
In the long term, having good credit can help you save thousands of dollars on large purchases because it can get you lower interest rate. So it’s essential that you improve your credit. The most important thing you should do to improve your credit is paying off your credit card bills each month.
2. Beat the Banks
The next thing you should do is setting up the right bank accounts. You need to have two different accounts: a checking account and a saving account. Having these two accounts makes managing your money easier.
When setting up your accounts, one important thing you should pay attention to is the fees. Fees are often more important than interest rates because they could easily wipe out the interest you earn. Get yourself accounts that have the lowest fees possible.
For saving accounts, find one with high interest rate. An online saving account usually meets this requirement.
3. Get Ready to Invest
Investing is essential to get rich. In fact, the author said that investing is the single most effective way